Financing low carbon cement production in emerging markets: Florence Bachelard-Bakal, EBRD (UK)
Filmed at Cemtech Europe 2015, 20-23 September, Intercontinental Hotel, Vienna, Austria.
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So very briefly, to explain what is EBRD for who are not familiar with us. OK, we were set up in 1991, mainly by European Union government. We have some very large shareholders outside the European Union, which are of course the United States but also Japan and Mexico and all the countries which EBRD operates, which are the former countries of the comic-con.
From countries from the Yugoslavia, the caucasus and more recently Turkey, Cyprus, Greece Morocco, Tunisia, Egypt and Jordan. So this is keeping us busy, we are operating with a capital base of 30 billion Euro, were not leveraged and now triple air rigid which give us some flexibility to do financing in difficult countries, in this emerging markets.
We are mostly private sector finance, about 70% of what we do is in the private sector. We do roughly 400 new projects every year, for a total of 7-8 billion Euro new money every year, and since we have been set up, we have invested about 100 billion Euro. That's the map of where we operate which give us quite a large diversity of countries jurisdiction and challenges as you can imagine.
Cement has been a very important sector for us of course, because it's essential to rebuild infrastructure of countries, also because it's very [xx] and this is typically where you need to have long term financing from development institutions of such EBRD, you will recognize of course, the large names in the industry, but also working with smaller producers and I will talk to you later about the project we have done in Mongolia with stanson which was launched months ago and also what we are doing more generally in Kazakhstan and in Egypt which is a new country for us.
Energy efficiency and surprisingly is very important. Non the less because we have been set up very recently, and our shareholders are very aware that CO2 emission is one of the critical aspects that have to be dealt with. We have the privilege of having grand funding that has been entrusted to us by a number of government or institutions, which allows us actually to support industrial projects, either through due diligence, project preparation or even through implementation since we have friends that are buying covered credit if we do the CDM project we also had access to some of grand funding for innovative technology which also helped us kick start some new number of structures on your projects in difficult countries.
So what have we done in Mongolia? Mongolia is an interesting country because it's huge, it's 1.4 million population, it imports almost until recently all its cement to China and you will appreciate that the cost of cement delivered to Ulaanbaatar the capital is very high for obvious reasons.
We were approached by a lady who was actually gold miner so nothing to do with cement, and once you purchased she had in hand business plan which was prepared by one equipment manufacturer at 300 Euro per tonne, we are not industry players but we have the comments sense to understanding that if you spend too much money on building your client, we never going to make money on return either tender or equity provider you will see in your return. So we sat down with the management and we had them re-tenderer, redo the design and then we tend tally their cement plant which basically led to decrease by 100% of the cost because we
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You need to have an active subscription to International Cement Review magazine to gain access, subscribe today for just just GBP£190.00, USD$315.00, EUR€250.00 for 12 months.
From countries from the Yugoslavia, the caucasus and more recently Turkey, Cyprus, Greece Morocco, Tunisia, Egypt and Jordan. So this is keeping us busy, we are operating with a capital base of 30 billion Euro, were not leveraged and now triple air rigid which give us some flexibility to do financing in difficult countries, in this emerging markets.
We are mostly private sector finance, about 70% of what we do is in the private sector. We do roughly 400 new projects every year, for a total of 7-8 billion Euro new money every year, and since we have been set up, we have invested about 100 billion Euro. That's the map of where we operate which give us quite a large diversity of countries jurisdiction and challenges as you can imagine.
Cement has been a very important sector for us of course, because it's essential to rebuild infrastructure of countries, also because it's very [xx] and this is typically where you need to have long term financing from development institutions of such EBRD, you will recognize of course, the large names in the industry, but also working with smaller producers and I will talk to you later about the project we have done in Mongolia with stanson which was launched months ago and also what we are doing more generally in Kazakhstan and in Egypt which is a new country for us.
Energy efficiency and surprisingly is very important. Non the less because we have been set up very recently, and our shareholders are very aware that CO2 emission is one of the critical aspects that have to be dealt with. We have the privilege of having grand funding that has been entrusted to us by a number of government or institutions, which allows us actually to support industrial projects, either through due diligence, project preparation or even through implementation since we have friends that are buying covered credit if we do the CDM project we also had access to some of grand funding for innovative technology which also helped us kick start some new number of structures on your projects in difficult countries.
So what have we done in Mongolia? Mongolia is an interesting country because it's huge, it's 1.4 million population, it imports almost until recently all its cement to China and you will appreciate that the cost of cement delivered to Ulaanbaatar the capital is very high for obvious reasons.
We were approached by a lady who was actually gold miner so nothing to do with cement, and once you purchased she had in hand business plan which was prepared by one equipment manufacturer at 300 Euro per tonne, we are not industry players but we have the comments sense to understanding that if you spend too much money on building your client, we never going to make money on return either tender or equity provider you will see in your return. So we sat down with the management and we had them re-tenderer, redo the design and then we tend tally their cement plant which basically led to decrease by 100% of the cost because we
That was just a 5 minute clip, to watch the full length video please login.
You need to have an active subscription to International Cement Review magazine to gain access, subscribe today for just just GBP£190.00, USD$315.00, EUR€250.00 for 12 months.
